Question.

In a country called Uncle Sam Land (USL), the labor demand curve is given by:

W = K – 4L

Where W is the wage rate, K is a variable determined by accumulated capital stock in the country, and L is the labor force in the country.

K = 50 is supplied by the capitalists.

If the labor force in this country goes up from 10 to 11, what happens to the national income in USL?

National Income = income of all workers + income of all capitalists.

Select one:

a. Does not change

b. Goes down by 44

c. Goes up by 8

d. Goes up by 26

e. None of the above.

Answer rating: 100% (QA)

Answer W 50 4L When L 10 W 50410 ... View the full answer